United States v. Schultz

                                                                      [PUBLISH]


             IN THE UNITED STATES COURT OF APPEALS

                     FOR THE ELEVENTH CIRCUIT            FILED
                       ________________________ U.S. COURT OF APPEALS
                                                         ELEVENTH CIRCUIT
                               No. 06-11673                 APRIL 22, 2009
                                                          THOMAS K. KAHN
                                                               CLERK
                       ________________________

                 D. C. Docket No. 02-00111-CR-T-17-MAP

UNITED STATES OF AMERICA,


                                                               Plaintiff-Appellee,

                                  versus

GREGORY G. SCHULTZ,

                                                         Defendant-Appellant.


                       ________________________

                Appeal from the United States District Court
                    for the Middle District of Florida
                     _________________________

                              (April 22, 2009)

Before CARNES, HULL and COX, Circuit Judges.

PER CURIAM:
      Gregory G. Schultz, convicted of several white-collar criminal offenses,

challenges an order entered by a federal magistrate judge denying his request to

represent himself at trial. Schultz argues that the magistrate judge lacked authority

to enter that order and, alternatively, that the magistrate judge erred by denying his

request. We affirm in part and dismiss in part for lack of jurisdiction.

                                           I.

      A federal grand jury returned a 38-count superseding indictment against

Schultz and three codefendants, charging them with: conspiracy to commit

securities fraud, mail fraud, and wire fraud, in violation of 18 U.S.C. § 371 (Count

1); securities fraud, in violation of 15 U.S.C. § 78j(b) (Counts 2 through 6); the

sale of unregistered securities, in violation of 15 U.S.C. § 77e(a) (Counts 7 through

9); mail fraud, in violation of 18 U.S.C. § 1341 (Counts 10 through 22); conspiracy

to commit money laundering, in violation of 18 U.S.C. § 1956(h) (Count 23);

illegal monetary transactions, in violation of 18 U.S.C. § 1957 (Counts 24 through

31); and money laundering, in violation of 18 U.S.C. § 1956(a)(1)(A)(i) (Counts

32 through 38).

      Schultz, a lawyer, represented himself at his first trial. During the fourth

week of the trial, however, Schultz collapsed while cross-examining one of the

government’s witnesses. That night, he was admitted to the hospital, where he



                                           2
remained for several days. In light of the time that it would take for doctors to

diagnose Schultz’s condition, the district court severed Schultz’s case from his

codefendants’ cases and ordered a mistrial.

       Schultz’s appointed standby counsel took over preparing his defense for the

retrial. Two weeks before Schultz’s second trial was scheduled to begin, Schultz’s

appointed attorney moved to withdraw from the case, explaining that he had a

conflict of interest because Schultz had recently filed a civil action against him.

The district court referred counsel’s motion to a magistrate judge. The district

court “also refer[red] any motion for self-representation by Defendant Gregory G.

Schultz. No motion has been filed at present but the Court understands the motion

will be filed.”1

       The magistrate judge held a hearing at which Schultz invoked his Sixth

Amendment right to represent himself in his upcoming trial, citing Faretta v.

California, 422 U.S. 806, 95 S. Ct. 2525 (1975). Exercising authority under §

636(b)(1)(A), the magistrate judge entered an order denying Schultz’s request for

self-representation because his “recent efforts [were] part of a consistent pattern of


       1
           Schultz argues that the district court wanted only a report and recommendation, not an
order, from the magistrate judge in this case. However, the record demonstrates that although the
district court requested a report and recommendation regarding Schultz’s counsel’s motion to
withdraw, its referral of Schultz’s motion for self-representation did not specify whether the
magistrate judge was to decide the motion and issue an order, or simply make a report and
recommendation.

                                               3
delay,” he had “persistently tried to obstruct the course of the judicial proceeding”

by intentionally filing non-meritorious motions, and he was engaged in “a

manipulative effort to create potential error” for purposes of appeal. Schultz did

not serve and file an appeal from the magistrate judge’s ruling.

      When the district court convened Schultz’s second trial shortly thereafter,

Schultz’s appointed attorney stated: “I would like to reassert for Mr. Schultz his

desire, his motion to represent himself,” to which the district court responded:

“Denied.”

      A jury found Schultz guilty on all counts except for Count 6, which the

government agreed to dismiss, and Count 21, of which he was found not guilty.

The court sentenced Schultz to 262 months imprisonment. This is Schultz’s appeal

from the judgment of conviction.

                                          II.

      First, Schultz contends that the magistrate judge lacked authority to rule on

his request to represent himself at his trial under Faretta, 422 U.S. at 807. Schultz

argues that, under Faretta and the Sixth Amendment, his right to self-representation

is a fundamental right and that therefore a magistrate judge, as an Article I judge,

has no authority to deny it. Although Schultz failed to raise that argument to the

district court, we review challenges to a magistrate judge’s authority even when the



                                           4
defendant has not objected in the district court. United States v. Desir, 257 F.3d

1233, 1235 (11th Cir. 2001); United States v. Maragh, 189 F.3d 1315, 1318 (11th

Cir. 1999) (citing Glidden Co. v. Zdanok, 370 U.S. 530, 535–36, 82 S. Ct. 1459,

1465 (1962)) (observing that the Supreme Court has treated challenges to a

magistrate judge’s statutory authority as if they were jurisdictional issues).

Because Schultz did not raise his challenge to the magistrate judge’s authority in

the district court, however, we review it only for plain error. United States v.

Freixas, 332 F.3d 1314, 1316 (11th Cir. 2003) (“Freixas's argument concerning the

magistrate judge's authority is advanced for the first time on appeal, and

accordingly we review it only for plain error.”).

       To demonstrate plain error, Schultz must show that: “(1) an error occurred;

(2) the error was plain; (3) it affected his substantial rights; and (4) it seriously

affected the fairness of the judicial proceedings.” United States v. Gresham, 325

F.3d 1262, 1265 (11th Cir. 2003). An error is not plain unless it is contrary to

explicit statutory provisions or to on-point precedent in this Court or the Supreme

Court. United States v. Lejarde-Rada, 319 F.3d 1288, 1291 (11th Cir. 2003).

       In this case, it was not error at all, much less plain error, to allow a

magistrate judge to decide Schultz’s motion for self-representation. “Magistrate

judges do not . . . exercise the authority of judges appointed under Article III of the



                                             5
United States Constitution; rather, magistrate judges draw their authority entirely

from an exercise of Congressional power under Article I . . . . The jurisdiction and

duties of federal magistrate judges are outlined principally in [28 U.S.C. § 636].”

Thomas v. Whitworth, 136 F.3d 756, 758 (11th Cir. 1998). Turning to the

language of 28 U.S.C. § 636(b)(1)(A), it appears that magistrate judges do have the

authority to make decisions regarding counsel for the defendant. Section §

636(b)(1)(A) states:

      Notwithstanding any provision of law to the contrary . . . a judge may
      designate a magistrate judge to hear and determine any pretrial matter
      pending before the court, except a motion for injunctive relief, for
      judgment on the pleadings, for summary judgment, to dismiss or
      quash an indictment or information made by the defendant, to
      suppress evidence in a criminal case, to dismiss or to permit
      maintenance of a class action, to dismiss for failure to state a claim
      upon which relief can be granted, and to involuntarily dismiss an
      action. A judge of the court may reconsider any pretrial matter under
      this subparagraph (A) where it has been shown that the magistrate
      judge’s order is clearly erroneous or contrary to law.

28 U.S.C. § 636(b)(1)(A). Thus, magistrate judges are authorized to “hear and

determine any pretrial matter,” and none of the specific exceptions to this rule

include a pretrial motion for self-representation or anything analogous to that type

of motion. A literal reading of the statute therefore supports the district court’s

decision to refer Schultz’s motion for self-representation to a magistrate judge.

      Moreover, in addition to the language of the statute, case law also holds that



                                           6
magistrate judges have the authority to decide motions for self-representation. See

Freixas, 332 F.3d at 1319. In Freixas the defendant retained counsel to represent

her and a co-defendant. Because sharing counsel created a potential conflict of

interest, a magistrate judge held a full Garcia2 hearing and concluded that Freixas

was “competent, that she comprehended the charges against her and the maximum

punishment for each, and that she understood both the potential conflict arising

from the sharing of an attorney with an alleged coconspirator and her right to

effective representation of counsel.” Id. at 1317. Accordingly, the magistrate

judge found that Freixas knowingly and voluntarily waived any conflict in her

representation. Id. We upheld the magistrate judge’s authority to make that

determination. Id. at 1319. Notably, the competency and knowledge requirements

for waiving a right to conflict-free representation are substantially the same as the

requirements for waiving right to assistance of counsel entirely, which is a

prerequisite to representing oneself. Godinez v. Moran, 509 U.S. 389, 399–400,

113 S. Ct. 2680 (1993); Faretta, 422 U.S. at 835, 95 S. Ct. at 2541 (stating that a

defendant must only “competently and intelligently” choose self-representation,

just as he must “knowingly and intelligently” forgo his right to a lawyer). Thus,

the determinations made by the magistrate judge in Freixas were quite similar to


       2
        United States v. Garcia, 517 F.2d 272, 278 (5th Cir. 1975), abrogated on other grounds by
Flanagan v. United States, 465 U.S. 259, 263 n.2, 104 S. Ct. 1051, 1053 n.2 (1984).

                                               7
those that would ordinarily be made by a magistrate judge deciding a motion for

self-representation. Our holding in Freixas supports allowing a magistrate judge to

decide Schultz’s motion.

      Finally, other circuits have expressly stated that magistrate judges have the

authority to decide motions for self-representation and substitute counsel. See,

e.g., United States v. Modena, 302 F.3d 626, 630 (6th Cir. 2002) (citing §

636(b)(1)(A) and stating that “[a] magistrate judge is authorized by statute to

determine whether a criminal defendant has effectively waived the right to

counsel”); United States v. Brown, 79 F.3d 1499, 1503 (7th Cir. 1996) (“Title 28

U.S.C. § 636(b)(1)(A) permits district judges to designate non-Article III

magistrate judges for the determination of nondispositive pretrial motions, such as

motions for substitute counsel”).

      Against all of this precedent, Schultz cites no case that holds that

determining whether a defendant may waive his right to counsel and represent

himself under the Sixth Amendment and Faretta is beyond the statutory authority

given to magistrate judges under 28 U.S.C. § 636. Schultz’s best argument derives

from the Supreme Court’s opinions in Gomez v. United States, 490 U.S. 858, 109

S. Ct. 2237 (1989), and Peretz v. United States, 501 U.S. 923, 111 S. Ct. 2661

(1991).



                                          8
      In Gomez the Court decided that conducting jury selection was beyond the

authority of a magistrate judge. 490 U.S. at 876, 109 S. Ct. at 2248. Most of the

Court’s analysis focused on § 636(b)(3), the residual clause that grants magistrate

judges the power to handle “such additional duties as are not inconsistent with the

Constitution and laws of the United States.” 28 U.S.C. § 636(b)(3). The Court

accepted the argument that allowing an Article I judge to perform the important

function of jury selection, traditionally the province of Article III judges, might

raise a constitutional question. Accordingly, it chose to read the statute so as not to

create that question. Gomez, 490 U.S. at 864, 109 S. Ct. at 2241. The Court also

rebuffed any argument that jury selection was a pretrial matter that could be

handled by a magistrate judge under § 636(b)(1)(A). It found that suggestion

meritless because “subparagraph (A) was plainly intended for less important

matters than voir dire.” Id. at 874 n.28, 109 S. Ct. at 2247 n.28. Two years later,

in Peretz, the Court limited Gomez by holding that if a defendant expressly

consented, the constitutional issue would disappear and a magistrate judge would

have statutory authority to conduct jury selection. Peretz, 501 U.S. at 940, 111 S.

Ct. at 2671.

      Thus, Gomez and Peretz provide some oblique support for Schultz’s

position. Those decisions identify at least one stage of a criminal



                                           9
proceeding—jury selection—that is too “critical” for an Article I magistrate judge

to handle without the defendant’s consent. Schultz’s argument is that, by analogy,

deciding a motion for self-representation is equally “critical” and thus must be

considered beyond a magistrate judge’s authority under § 636. However, Schultz

cites no case that extends Gomez and Peretz to issues involving selection of

counsel or the waiver of the right to assistance of counsel. And our own Freixas

decision, issued in 2003, along with the Second Circuit’s Modena decision in 2002,

came well after Gomez and Peretz and did not even hint at the extension Schultz

requests here.

      Therefore, under Freixas there was no error, much less plain error, in the

district court’s decision to refer Schultz’s motion for self-representation to a

magistrate judge. See Gresham, 325 F.3d at 1265. Having established that it was

not error for the magistrate judge to exercise authority over Schultz’s motion for

self-representation, the next question is whether we may reach the merits of the

magistrate judge’s decision to deny Schultz’s motion.

                                          III.

      “The law is settled that appellate courts are without jurisdiction to hear

appeals directly from federal magistrates.” United States v. Renfro, 620 F.2d 497,




                                           10
500 (5th Cir. 1980).3 In Renfro a magistrate judge acting under § 636(b)(1)(A)

issued a ruling against the defendant on a pretrial discovery motion. Id. at

499–500. We held that we lacked jurisdiction to review that magistrate judge’s

ruling because the defendant had not promptly appealed it to the district court:

       In the case at bar, while Renfro did appeal the magistrate’s ruling to
       the district court, he did not do so until after trial. This delay deprived
       the trial judge of his ability to effectively review the magistrate’s
       holding. In essence then, defendant is now appealing a magistrate’s
       decision directly to this Court . . . . Accordingly, this part of
       defendant’s appeal must be dismissed.

Id. at 500. Under Renfro, if the district court had no opportunity to “effectively

review the magistrate’s holding” at the request of the wronged party, we lack

jurisdiction to hear an appeal of the merits of that holding. Id.

       As we have held, we are bound to follow Renfro under our prior panel

precedent rule until this Court sitting en banc or the Supreme Court overrules it.

United States v. Jacqueline Brown, 342 F.3d 1245, 1246 (11th Cir. 2003) (holding

that the prior panel precedent rule applied to Renfro, and reinstating a decision to

deny jurisdiction after it was vacated by the Supreme Court). In Jacqueline Brown,

a magistrate judge entered an order denying Brown’s counsel’s request to

withdraw. Neither Brown nor her counsel “ever raised the issue before the district


       3
         In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (en banc), we adopted
as binding precedent all decisions of the former Fifth Circuit handed down prior to October 1, 1981.


                                                11
court for review of the magistrate judge’s order.” 299 F.3d 1252, 1259 (11th Cir.

2002), judgment vacated and remanded, 538 U.S. 1010, 123 S.Ct. 1928 (2003),

opinion reinstated on remand, 342 F.3d at 1246. Accordingly, Brown’s appeal

amounted to an appeal directly from the magistrate judge’s ruling, and we lacked

jurisdiction. Id.; see also United States v. Meier Brown, 441 F.3d 1330, 1352

(11th Cir. 2006) (holding that we lacked jurisdiction to review a magistrate judge’s

order quashing a subpoena “because Brown never appealed the ruling to the district

court”). Therefore, in this case, if Schultz failed to appeal to the district court the

magistrate judge’s denial of his motion for self-representation, then we lack

jurisdiction to hear his appeal.

       Schultz contends that he did challenge the magistrate judge’s order in the

district court when his attorney asserted that Schultz still desired to represent

himself. Shortly before Schultz’s second trial began, his attorney stated: “I would

like to reassert for Mr. Schultz his desire, his motion to represent himself.” The

district court said “Denied.”

      First, we doubt that Schultz’s oral objection, as opposed to a formal appeal

or written objection, was sufficient to preserve his appeal. Certainly, since

December 1, 2005 it would not be sufficient because on that date Federal Rule of

Criminal Procedure 59(a) came into effect. Rule 59(a) requires the defendant to



                                           12
“serve and file objections” to non-dispositive rulings by a magistrate judge within

ten days, and states that “[f]ailure to object in accordance with this rule waives a

party’s right to review.” Fed. R. Crim. P. 59(a) (2005).

       In this case, the magistrate judge’s order was issued in late September 2005,

two months before Rule 59(a) came into effect. But even before Rule 59(a), the

legislative history corresponding to § 636(b)(1)(A) suggests that Congress

understood that a proper appeal would be done in writing, not orally. See H.R.

Rep. No. 94-1609, at 10 (1976) (“[O]btaining reconsideration of a magistrate's

order by the judge [] would normally be by motion duly served, filed and noticed.

However, in some districts the local rules now in existence provide merely that the

request for review be in a letter or other written form.”).

       Nonetheless, even if we accept the assertion that an oral objection could

have been sufficient to preserve appellate review in this pre-Rule 59(a) case, the

statement made by Schultz’s attorney was still insufficient. The entire exchange in

the district court was this:

       Mr. Fernandez: I would like to reassert for Mr. Schultz his desire, his motion
       to represent himself.
       Court: Denied.

This single statement by Schultz’s counsel, although it was at odds with the

magistrate judge’s ruling, did not even refer to the order, let alone challenge its



                                           13
reasoning— namely, that Schultz was not entitled to represent himself because he

was purposefully obstructing judicial proceedings and manufacturing error for

purposes of appeal. Such a generalized re-assertion of Schultz’s desire to represent

himself was not specific enough or clear enough to permit the district court to

“effectively review” the magistrate judge’s ruling. See Renfro, 620 F.3d at 500

(concluding that appealing a magistrate judge’s pretrial ruling in a post-trial motion

“deprived the trial judge of his ability to effectively review the magistrate’s

holding”).

       The conclusion that Schultz’s appeal to the district court was insufficient is

further supported by our case law in the similar context of § 636(b)(1)(B). After a

magistrate judge has issued a report and recommendation under § 636(b)(1)(B), a

party that wishes to preserve its objection must clearly advise the district court and

pinpoint the specific findings that the party disagrees with. In Nettles v.

Wainwright, 677 F.2d 404, 409–10 (5th Cir. Unit B 1982),4 our predecessor Court



       4
          We adopted as binding precedent all Fifth Circuit decisions handed down prior to October
1, 1981, and all Unit B decisions from any date. Stein v. Reynolds Sec., Inc., 667 F.2d 33, 34 (11th
Cir. 1982). Although the Fifth Circuit has since overruled Nettles in Douglass v. United Services
Automobile Ass’n, 79 F.3d 1315, 1428–29 (5th Cir. 1996) (en banc), that does not change the
binding effect of Nettles in this Circuit because Douglass was decided after October 1, 1981, and
was not a Unit B decision. See Stovall v. City of Cocoa, 117 F.3d 1238, 1241 n.2 (11th Cir. 1997)
(“Of course, we are not bound by the Fifth Circuit’s construction of former Fifth Circuit cases.”);
DeLong Equip. Co. v. Washington Mills Electro Minerals Corp., 997 F.2d 1340, 1342 (11th Cir.
1993) (noting that a Fifth Circuit decision from 1986 that overruled a binding Fifth Circuit decision
from 1975 did not bind the Eleventh Circuit).

                                                 14
stated:

          It is reasonable to place upon the parties the duty to pinpoint those
          portions of the magistrate’s report that the district court must specially
          consider. This rule facilitates the opportunity for district judges to
          spend more time on matters actually contested and produces a result
          compatible with the purposes of the Magistrates Act.

Following Nettles, in Marsden v. Moore, 847 F.2d 1536, 1548 (11th Cir. 1988), we

held that a habeas petitioner did not sufficiently object to a magistrate judge’s

recommendation because his objection was insufficiently clear and precise. Id.

(“Parties filing objections to a magistrate's report and recommendation must

specifically identify those findings objected to. Frivolous, conclusive, or general

objections need not be considered by the district court.”). We require similar

specificity for objections in other contexts as well, such as sentencing objections.

See United States v. Zinn, 321 F.3d 1084, 1087–88 (11th Cir. 2003) (“Whenever a

litigant has a meritorious proposition of law which he is seriously pressing upon

the attention of the trial court, he should raise that point in such clear and simple

language that the trial court may not misunderstand it, and if his point is so

obscurely hinted at that the trial court quite excusably may fail to grasp it, it will

avail naught to disturb the judgment on appeal.”). In sum, Schultz’s one-sentence

reassertion of his motion, without any reference to the magistrate judge’s order or

its findings, was insufficient to convey to the district court the substance of any



                                              15
objection he may have had to the magistrate judge’s order. Accordingly, Schultz

never gave the district court an opportunity to “effectively review” the magistrate

judge’s factual findings and legal conclusion, and we lack jurisdiction to hear it

now. Renfro, 620 F.3d at 500.

      Finally, Schultz contends that, even if his objection was insufficient, we

nonetheless have jurisdiction to review the magistrate judge’s order. Schultz

argues that his failure to object should be excused because the magistrate judge

never notified him of his right to appeal to the district court. Schultz argues that

under Nettles, a party’s right to appellate review in this Court cannot be limited

unless the magistrate judge informed the party that objections had to be filed in the

district court within ten days of the magistrate judge’s report and recommendation.

677 F.2d at 408, 410.

      However, Nettles involved a magistrate judge’s report and recommendation

issued under § 636(b)(1)(B), not a pretrial order issued under § 636(b)(1)(A). And

although the subparagraphs are similar in some ways, in 2005 subparagraph (B)

carried a ten-day time limit on appeals to the district court, while subparagraph (A)

did not. The reason that the Nettles court adopted the notice requirement was to

give the parties fair warning that § 636(b)(1)(B) required any objection to be filed

within ten days of receiving a copy of the magistrate judge’s report and



                                           16
recommendation. See Nettles, 677 F.2d at 408 (citing United States v. Walters,

638 F.2d 947 (6th Cir. 1981)).

       But in September of 2005, before Rule 59(a) came into effect, there was no

ten-day limit under § 636(b)(1)(A), and so no ten-day limit applied to Schultz. See

Jacqueline Brown, 299 F.3d at 1260 n.10 (observing in 2002 two differences

between subparagraphs (A) and (B): that (A), unlike (B), did not require parties to

receive a copy of the magistrate judge’s findings, and that “[n]or, on the other

hand, is there a time limit prescribed in § 636(b)(1)(A)”). Thus, the notice

requirement in Nettles was designed to function under § 636(b)(1)(B) and to

address a time limit that did not apply to Schultz.5

       Thus, in this case there is no logical reason to extend Nettles’ notice

requirement to Schultz. Additionally, several other circuits, while agreeing with

Nettles that notice of the time limit is required for dispositive motions, have

concluded that notice is not required for orders like the one in this case. See, e.g.,

Caidor v. Onondaga County, 517 F.3d 601, 604–05 (2d Cir. 2008) (limiting its

notice requirement to dispositive recommendations issued under § 636(b)(1)(B),

and declining to extend such a requirement to nondispositive orders issued under



       5
          In fact, Schultz’s statement to the district court about reasserting his motion to represent
himself, although insufficient as an appeal of the magistrate judge’s order, did occur within ten days
of the magistrate judge’s ruling.

                                                 17
§ 636(b)(1)(A)); United States v. Akinola, 985 F.2d 1105, 1108 (1st Cir. 1993)

(“Moreover, as we pointed out during oral argument, even when such a warning is

required, it is necessary only as part of a Magistrate Judge’s report and

recommendation to the district judge, 28 U.S.C. § 636(b)(1)(B), (C), and not when

the Magistrate Judge issues a non-dispositive order [under § 636(b)(1)(A)].”).

       In sum, because Schultz did not appeal the magistrate judge’s order to the

district court, we lack jurisdiction to review the merits of the magistrate judge’s

order. Accordingly, we dismiss this portion of his appeal for lack of jurisdiction.

                                           IV.

       Schultz’s last contention is that the district court erred by denying his motion

to dismiss for prosecutorial vindictiveness. Rather than offer any argument on this

issue, however, Schultz cites Fed. R. App. P. 28(i) and 11th Cir. R. 28-1(f) and

seeks to adopt by reference that argument, which was advanced in a codefendant’s

brief filed in a separate direct appeal.

       Rule 28(i) does not permit adoption of arguments by reference between

cases unless a motion for adoption is made and granted, which has not occurred in

this case. United States v. Bichsel, 156 F.3d 1148, 1150 n.1 (11th Cir. 1998).

Accordingly, Schultz’s attempt to adopt his codefendant’s argument fails.




                                           18
                                           V.

      We conclude that it was not plain error for the magistrate judge to exercise

authority under § 636(b)(1)(A) to enter an order deciding Schultz’s pretrial request

for self-representation. We lack jurisdiction to consider Schultz’s arguments

attacking the merits of the magistrate judge’s order because he did not sufficiently

appeal that order to the district court. Finally, we decline to permit him to

incorporate an argument from another case by reference. Accordingly, we affirm

in part and dismiss in part for lack of jurisdiction.

      AFFIRMED IN PART; DISMISSED IN PART.




                                           19